The Nifty hit a fresh record high at 15,733.60 during the day, but ended lower even though the central bank maintained its accommodative stance. Near-term markets will likely trade in a narrow range on RBI support via open market operations/G-SAP programme. This may perhaps be premature, considering the second wave and its relatively large impact on the informal sector (for which fiscal policy is more effective)," he said. Most experts believe RBI will have limited headroom to tinker with interest rates going forward. We think that over the current fiscal, RBI will not have any leeway to change its interest rates to provide support to the economy.

Source: Mint June 04, 2021 15:08 UTC